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1
IMPLEMENTING COMMUNICATION IMPROVEMENTS AT LEXISNEXIS TO
INCREASE MORALE DUE TO OFFSHORING
By
Doon Kemmer
BSMO 167
A paper submitted in partial fulfillment of the requirements for the degree of
Bachelor of Science in Management
INDIANA WESLEYAN UNIVERSITY
November 2011
I have read and understand the plagiarism policy as outlined in the syllabus and the sections in
the Student Catalog relating to the IWU Honesty/Cheating Policy. By affixing this statement to
the title page of my paper, I certify that I have not cheated or plagiarized in the process of
completing this assignment. If it is found that cheating and/or plagiarism did take place in the
writing of this paper, I understand the possible consequences of the act/s, which could include
expulsion from Indiana Wesleyan University.
2
Table of Contents
Introduction ..................................................................................................................................... 3
Purpose of the Study ....................................................................................................................... 4
Significance of the Study ................................................................................................................ 5
Writer Significance ..................................................................................................................... 5
Department Significance............................................................................................................. 6
Company and Shareholder Significance ..................................................................................... 6
Broader Implications....................................................................................................................... 6
Organization Overview ................................................................................................................... 7
Identification and Discussion of Issues........................................................................................... 7
Information and Literature Review................................................................................................. 9
Analysis of Issues.......................................................................................................................... 16
Conclusion .................................................................................................................................... 18
References ..................................................................................................................................... 20
3
Introduction
During the past several years the economy of the United States of America has fluctuated
substantially. Due to this fluctuation and financial uncertainty, LexisNexis looked to save
money anywhere it could. The company looked into outsourcing in the past, but it was never cost
effective. Offshoring became an option and that is the route LexisNexis is choosing to go. This
case study looks into the decision to offshore customer service and its effect on communication
within the organization. It will look into ways of opening communication and resolving conflict
in an efficient and effective manner as well.
LexisNexis started as Mead Data Central in 1970 as they spun off from Mead with plans
for the LEXIS database (LexisNexis, 2011). LexisNexis is now a subsidiary of Reed Elsevier,
Inc. which is located in London, England. LexisNexis serves customers in more than 100
countries with over 15,000 employees at their global locations (LexisNexis, 2011). They provide
solutions for a large customer base of professionals, but their biggest market is the legal market.
They are going to offshore part of customer service to Manila, Philippines. Manila is the capital
city of the Philippines and has a population of approximately 1.6 million people (CIA, 2011).
Manila is now the world’s leader in telephonic support over India (B. Flynn, personal
communication, October 12, 2011).
The research for this case was gathered from a great variety of sources. A great deal of
the material was taken from books and periodicals about communication and conflict
management, as well as managerial styles and learning styles. Personal interviews were
conducted with employees of LexisNexis who make up three levels of management and staff.
These individuals also have great insight to both upward and downward communication within
the organization.
4
The analysis of this case has garnered some interesting revelations. The effect of the
offshoring to the employee was great, but the effect on upper and middle management was also
tremendous. The addition of a new policy for communication will lessen the burden on both the
employees and managers. This then generates a more positive morale throughout the
organization.
Purpose of the Study
The following case study takes a look at the communication and conflict resolution
policies within the technical customer service department of LexisNexis and how they have been
affected by offshoring.
The main issue that the technical customer service department of LexisNexis is dealing
with at the moment is the lack of effective communication and quality conflict management
skills. There are a number of reasons behind these issues. The main reason is the fact that
LexisNexis has decided to offshore some of its customer service to the city of Manila in the
Philippines. LexisNexis can offshore because they are a subsidiary of Reed Elsevier Inc. Reed
Elsevier Inc. has locations across the globe and needs to utilize all of its locations in order to
save money and be more efficient. Offshoring part of the customer service department will save
the company money but it will cost some U.S. based employees their jobs.
The impending offshoring project has exposed issues in communication and conflict
management. The employees feel as if they are not being told all that they need to know and
management is under the impression that they are telling them everything they know. Both
parties have lost their skills for directional communication and conflict management. New
conflicts arise almost daily when the offshoring project is discussed.
5
This issue was chosen because it is the hottest topic in the workplace as it affects a large
amount of employees and customers. The research for the study was gathered from numerous
sources dealing with offshoring, directional communication, management styles, learning styles,
personality traits, conflict management and personal conversations with management personnel
and employees. The sources were chosen to assist in the guidance to find an effective solution
for all involved to become better at communication and conflict management. The desired effect
of this solution is increased employee morale and engagement. The items not covered in this
study are the costs lost and gained by offshoring part of a department.
Significance of the Study
Writer Significance: This particular topic was chosen because of a number of reasons.
In today’s economy the dollar is in the forefront of everything a company does. Saving money is
very important these days not only for people in general but for companies as well. This writer
is very interested in the effects of communication and conflict management at the workplace.
The secondary reason this topic was chosen was due to the fact it is a current issue and new
developments occur daily. It is the view of the writer that the issues caused by the offshoring
project can be solved in a simple yet refined manner that will benefit all involved.
Another reason this topic was chosen is the fact that it directly affects the writer. As a
current employee of LexisNexis for the past four years there have been many changes. None are
as significant as this move to offshore positions. There is a very real likelihood of the writer
losing his position and job. The writer is a Sr. Tech Support Representative in the customer
service department. He supports various applications for LexisNexis including the flagship
www.lexis.com and the main practice management software, TimeMatters ® over the phone.
6
Department Significance: The technical customer service department of LexisNexis
will benefit from this case study in a few ways. First, they will be able to communicate openly
with others including management about all work related topics. Second, the employees will
gain knowledge into conflict management skills to empower them to solve their own issues
before management must get involved. Third, the employees will hopefully find the atmosphere
at the office a bit less tense and gain increased morale. Managers will find the similar
advantages from this case study as well. They will gain in knowledge and skill but also be able to
spend their time on other tasks due to the employees’ newfound knowledge and skill.
Company and Shareholder Significance : LexisNexis and its shareholders will also
benefit from this case study. A byproduct of increased morale is a larger percentage of employee
buy-in and employee engagement. This increased engagement should help to bolster the
customer service department as a leader in the industry thereby increasing profits.
Broader Implications
The solutions developed in this case study have the potential to utilized in the other
aspects of the customer service department of LexisNexis; the operations and legal, news and
finance departments to be more specific. The processes can then be administered in other
departments within LexisNexis as well as throughout the parent company of Reed Elsevier Inc.
within the United States. Barring any regulations or laws, these policies can also be
implemented in the Reed Elsevier and LexisNexis locations across the globe. Effective
communication and conflict management can be used by everyone.
7
Organization Overview
LexisNexis is a leading provider of content-enabled workflow solutions designed
specifically for the legal, risk management, government, law enforcement etc. markets
(LexisNexis, 2011). They began life as Mead Data Central in Dayton, OH in 1970. They
developed LEXIS a full text of Ohio and New York codes and cases, the U.S. code and some
federal case law as well (LexisNexis, 2011). As a member of Reed Elsevier, LexisNexis assists
customers in over 100 countries with more than 15,000 employees worldwide (LexisNexis,
2011). They have now placed that full text code on the internet and added codes and cases from
all over the world. They have also developed case management software to assist attorneys,
doctor, accountants and more in managing the front office and back office portions of their
respective businesses.
LexisNexis is forced to change their offerings yearly, monthly and even daily due to the
competition in the markets in which they occupy. In order to be successful they must take a look
not only at what kind of products they offer the customer, they must look at the how they support
that customer as well. Offshoring is a great way to continue to utilize existing resources and save
costs. The con of offshoring is that it may cause an increase in job losses for individuals in the
United States.
Identification and Discussion of Issues
LexisNexis is constantly trying to improve their share of the legal research market with
products and service. In order to offer more and more products and services, funding is needed.
One way to save money is to offshore one of the aspects of business that doesn’t generate a
profit. The wages in Manila are a fraction of the wages in the United States.
8
Due to this offshoring project, employees and managers alike are having trouble coming
to grips with the consequences and advantages. The use of the facility in Manila requires the
hiring and training of new employees. These new employees will be replacing employees in the
United States. The creation of turnover has caused the employees and managers to be on edge
wondering if they will be the ones laid off. With that, conflicts are arising daily and they are not
being resolved quickly and efficiently.
Questions to Be Answered
How can learning styles and personality types assist in conflict management? This
question was chosen because learning styles and personalities are at the heart of most conflicts.
Understanding the people you work with will give the managers and employees’ opportunities to
solve conflicts themselves and even avoid them in the beginning. In order to learn about one’s
co-workers, they must utilize some tools. One of the best tools to use is the Myers-Briggs
assessment. This assessment helps with the understanding of a person’s personality type. In
order to determine a person’s learning style we will utilize the Kolb learning styles by
comparison. In order to gather this type of information from the employees, training classes
need to be administered. LexisNexis has each employee complete a Myers-Briggs assessment
annually and the employees keep their results as well as the class administrator.
What are the roles of communication? This question was chosen because by defining
the roles of certain types of communication within the organization can help to communicate
more effectively and efficiently. In this case we will look at the roles of upward and downward
communication specifically. We will also touch on other roles as well, such as the role of a
manager and the roles of a Human Resources manager.
9
Information and Literature Review
According to Abbot (2010), better communication comes with identifying and
understanding workplace communication flows. Abbot (2010) discusses the four flows of
communication and defines them as: downward, upward, laterally and through the grapevine.
These four types are there regardless of the type of communication being used. Whether you are
using verbal, written or non-verbal communication these flows can be present. The author also
discusses a major characteristic of downward communication. He defines enabling as a
communication that enables the receiver to perform a task or service.
Adler and Elmhorst (2009) take a realistic look at communication in the workplace. The
authors emphasize working in teams to develop communications in the workplace. They also
assist the reader in learning and cultivating the necessary skills to create and plan effective
communications both verbally and non-verbally. Some of these skills include: tone of voice,
critical thinking and planning to name a few.
In the blog by Adnan the author gives a brief and informative look at communication and
its types. The author defines communication as “the exchange of ideas, opinions and
information through written or spoken words, symbols or actions.” Adnan describes three types
of communication in simple and easy to understand terms: Upward communication is the flow
of information from employees to management, Downward communication is the flow of
information in the opposite direction manager to employee, and Horizontal/Literal
communication is the communication between co-workers.
Ethics in business are equally important when dealing with communication and
offshoring. Qualifying the need for ethical behavior and applying those behaviors into everyday
business is paramount for success in Business Ethics: Sunday Ethic – Monday World by Batson
10
and Neff (2007). Having a personal statement of ethics can help lead managers and employees
alike in the right direction. There are four rules of ethical communication: never intentionally
deceive, do not purposely harm, practice the “Golden Rule” in communication and consider the
organizational culture of the organization.
Bivens (2005) discusses the findings of studies done by McKinsey Global Institute
(MGI), Global Insight (GI), and the Institute for International Economics (IIE) that look at the
cost benefit of offshoring. The report from MGI found that there are very large cost benefits to
offshoring. What Bivens says it does not do is translate into net economy-wide gains. The author
states that the U.S. economy does not operate like a large corporation. Bivens surmised that the
GI study’s estimates were too high for the savings of offshoring and that all of the savings would
be passed to the consumer through lower prices. Bivens states the study conducted by Catherine
Mann at IIE provides a transparent economic case for the effect of offshoring Information
Technology jobs.
The Center for American Progress (2004) held an event on May 20, 2004 that was aimed
at looking at how the United States should deal with offshoring. This event covered four topics.
The first topic was that job creation in the United States is too slow. The panel surmised that the
tax cuts provide by President Bush at that time were the direct cause. The second topic was the
pain and suffering of those who lost their jobs is real. In this topic the panel found that the health
insurance premiums have skyrocketed due to the loss of jobs. The third topic was Congress
should consider specific policy proposals to address the problems created by job loss and
offshoring. The panel wanted Congress to extend the Trade Adjustment Act (TAA) to service
workers and they wanted Congress to increase support for lifelong learning. The final topic was
11
to compete globally the United States needs to greatly improve its education and healthcare
systems.
Chapman (2010) defines the four different learning styles that were developed by David
Kolb. Chapman (2010) gives a brief description of Diverging, Assimilating, Converging and
Accommodating along with an example of each style in real world terms. In the article the
author also looks at some correlations to other behavior concepts. He mentions the Myers-Briggs
Type Indicator and how it is similar in how its north-south and east-west continuums are very
closely related. The author also states that knowing the learning styles of others can help in
finding the most efficient way to communicate with them.
The Philippine islands were a Spanish colony during the16th century and they gained
their independence on July 4, 1946 (CIA, 2011). The Philippine Government faces threats from
several groups on the US Government’s Foreign Terrorist Organization list (CIA, 2011). The
Philippines are located in southeastern Asia and total approximately 300,000 sq km The Filipino
people speak Filipino and English and both are the official language of the country according to
the CIA (2011). The median age of the country is 22.9 years old with 4.3% of the population 65
years of age or older (CIA, 2011).
Easy Communication (2006) further explores downward communication in an
organization. The authors define downward communication as “information flowing from the
top of the organizational management hierarchy and telling people in the organization what is
important (mission) and what is valued (policies) (Easy Communication, 2006).” Downward
communication is needed to get things done, prepare for changes, to deject lack of understanding
and doubt (Easy Communication, 2006).
12
Fisher, Ury and Patton (1991) give a step-by-step strategy for coming to jointly
satisfactory agreements in conflicts. This strategy can be used in all types of conflicts no matter
who it involves (Fisher, Ury, & Patton, 1991). The authors use a term called Negotiation Jujitsu
to describe when the other party “won’t play.” This section of the book gives ideas to get the
other party to begin negotiating and make amicable gains for both sides. This utilizes a third
party to help with the negotiation as a mediator.
Goodwin and Griffith (2007) give insight into how to determine the triggers of conflict,
create role play environments and apply those and other skills to the real world. The interest-
based approach to conflict negotiation will apply to this case due to the fact that, according to
Goodwin and Griffith (2007), it focuses on parties’ underlying needs, concerns and desires and
finding solutions that will address them.
Hill (2011) describes offshoring as foreign direct investment undertaken to serve the
home market. This is what LexisNexis is trying to accomplish by moving some operations to
Manila. Hill states that call center employees in India make $200 to $300 a month which is
about one tenth of a comparable United States wage. Hill states that outsourcing and offshoring
are make or buy decisions. In the case of LexisNexis, it is a make decision. The facility was
already there and all LexisNexis must do is hire and train the new employees to become fully
operational.
The corporate website for LexisNexis (2011) gives a general overview of what
LexisNexis is and what products they provide and to which business type they are for.
LexisNexis started as Mead Data Central in 1970 as they spun off from Mead with plans for the
LEXIS database (LexisNexis, 2011). LexisNexis is now a subsidiary of Reed Elsevier, Inc.
which is located in London, England. LexisNexis serves customers in more than 100 countries
13
with over 15,000 employees at their global locations (LexisNexis, 2011). LexisNexis is a
leading global provider of content enabled workflow solutions designed specifically for a
number of business types, including: legal, risk management, government and corporate markets
(LexisNexis, 2011).
Martin (2007) explores the trend of utilizing technology for communication and the
steady decline of face-to-face communication. According to Martin (2007) the top personal
method of communication by managers is email. The author states that using email rather than a
personal discussion can delay decision-making. “We need to take vacations from our
Blackberrys, computers and voicemail and get out and talk to everyone in the organization.
Nothing can replace open and honest face-to-face communication (Martin, 2007).”
People Communicating (2010) discusses giving orders and what tends to happen and how
to make it work correctly. An example of a poor communication giving orders would be: the
manager has let the power go to his head and uses the wrong words and not state things in a clear
and understandable way (People Communicating, 2010). Good communication is marked with
respect and clear concise instruction (People Communicating, 2010). The article also discusses
using downward communication for both positive and negative feedback. Some points the article
suggests on giving positive feedback are: be forthright, give recognition immediately, recognize
specifics, adjust recognition to the deed and take note of accomplishments by employees and
include them on performance evaluations.
Roberts (1993) utilizes the brutal Hun, Attila as his protagonist to demonstrate leadership
qualities and skills. He chose Attila because he showed single-minded determination and
concern for his followers. Roberts (1993) brings forth a concept called Tribal Togetherness.
14
This concept requires all parties to be on the same path in order to succeed. This is the essence
of the trigger to this case as few of the parties involved are on the same path.
Seedam (2008) states that downward communication is most commonly done when a
manager gives an employee instructions to get a task accomplished. The author then gives
examples of effective downward communication types such as: organizational manual or
handbook, oral communication, written direct communication and briefings. Motivation is a key
factor in communication as well. Downward communication can be used for motivation and
feedback, both positive and negative. It is also an easy way to communicate the organization’s
values and beliefs (Seedam, 2008).
Spector (2010) provides a framework for implementing an effective organizational
change based on three perspectives of change. The author states strategic perspective focuses on
aligning behaviors with renewed strategy and the requirements of outstanding performance is the
first perspective (Spector, 2010). The second is, the purposeful perspective focuses on explicit
interventions into the organization that are designed to respond to a dynamic competitive
environment (Spector, 2010). The third perspective is behavioral perspective focuses on the
process of motivating employees at all levels of the organization to alter their patterns of
behavior (Spector, 2010).
The Times 100 (2011) stated that up until the late 1980s, many large firms in America
and Western Europe were characterized by the top-down model of communication. Modern
communication however, focuses on multi-flow communications and empowerment. The Times
100 (2011) also states that formal communications are those that involve the officially
recognized communication channels within an organization. They go on to say that informal
communications are those that involve other forms of communication between members of the
15
organization (The Times 100, 2011). Multi-channel communication involves a range of
communication flows for information including technology as well (The Times 100, 2011).
Ury (1991) uses a follow up to Getting to Yes to assist managers and employees alike in
negotiating with an individual or group that don’t want to negotiate. The author uses a five-step
strategy to not get a win over your opponent but win over your opponent (Ury, 1991). The five
steps are: don’t get react go to the balcony and collect your thoughts, disarm them step to their
side, change the game don’t reject…reframe, make it easy to say yes build them a golden bridge
and make it hard to say no bring them to their senses not their knees.
Werner and DeSimone (2009) explore the roles of Human Resources Development in
today’s business world. Organizational development is a process used to enhance both the
effectiveness of an organization and the well-being of its members through planned interventions
(Werner & DeSimone, 2009, p. 463). Edgar Schein’s Change model focuses on the dynamics of
individual change and how a change agent can assist with managing change (Werner &
DeSimone, 2009, p. 464). The first stage is the unfreezing stage, where the individual or group
is motivated to accept the change. The second stage is the actual change is accepted and
implemented. The final stage is that of refreezing. This is where the individual or group has
accepted the change, the change has been implemented and the change is now habit (Werner &
DeSimone, 2009, p. 465). The offshoring to Manila is an organization transformation change.
This theory views organizations as multifaceted, human systems, each with a distinctive
character, its own culture, and value system, along with information and work procedures that
must be frequently examined, scrutinized, and improved upon (Werner & DeSimone, 2009, p.
467).
16
Analysis of Issues
There is an old statement that states something similar to: communication is the key to a
successful relationship. This statement may have been meant for personal relationships, but it
applies in the business world just the same. In the third quarter of 2011, LexisNexis decided to
offshore part of the technical customer service department to a facility in Manila, Philippines.
This project has begun and staff is currently being trained at the Manila facility. The impact of
this project is starting to be felt at the Dayton and Springfield, OH locations. The major impact
of this project is communication or lack thereof.
“Top level management is in charge of the project and information is hard to come by for
the lower level managers and the affected employees (R. Shank, personal communication,
October 10, 2011).” This statement by Mr. Shank is the root of the current problem at
LexisNexis. The mid-level managers, like Mr. Shank, try to gain as much information as
possible and they also try to reciprocate that information to lower management and employees as
soon as they get it. “Rising frustration within the employee with the infrequent passing along of
information has made the working environment undesirable (J. Wing, personal communication,
October 10, 2011).”
“The perception of the workforce is that the upper management isn’t telling them the
entire truth and they are holding back information (S. Gohmann, personal communication,
October 10, 2011).” For this writer, the information may be there, but it has not been presented
in an efficient manner. Downward communication can come in many forms and be effective as
well (People Communicating, 2010). The communication can be an email, voicemail, podcast,
memo, letter and a face-to-face meeting. Management has had three meetings with each of the
technical customer support teams discussing the Manila Operations Center (MOC) since July,
17
2011. There have also been approximately ten emails and memos sent to the staff. While
information is being delivered as it comes in, there is a problem with the frequency of
communication and the understanding of the information provided. A solution for the frequency
of the communication is a weekly update email. This email could be sent to the staff every
Wednesday. The message would contain any new information, a date for an upcoming meeting
of discussion or that there is nothing new to report. This email should be sent by a different
manager every week to show that all of management is together in this project. Another reason
for a different manager to send the email is to change the routine. “I like a lot of people see the
same email come through and I’ll dismiss it and not read it (J. Wing, personal communication,
October 10, 2011).” If the email or memo is sent from someone new, the risk of it not being read
goes down.
One thing that LexisNexis already does is perform an annual personality assessment.
This is a tool used more and more to gain insight into team dynamics and conflict management.
LexisNexis uses the Myers-Briggs Type Indicator, or MBTI, to define and group individuals to
explore the team and department dynamic. “When you have an idea of why a person behaves
and reacts the way they do, some good things can happen. First a person can tailor their
communications to their audience so they will have a better understanding of the material.
Second, conflicts will start to decline because of the knowledge of the other person’s tendencies
(V. Boccia, personal communication, October 15, 2011).” Another tool LexisNexis can use is
the Kolb Experiential Learning Theory, or ELT. This theory closely resembles the MBTI in that
there are four points on two axes. The Active/Reflective (north-south) dialectic of the Kolb
theory closely resembles the Extraversion/Introversion dialectic of the MBTI (Chapman, 2010).
The Concrete Experience/Abstract Conceptualization (east-west) dialectic closely resembles the
18
Feeling/Thinking dialectic of the MBTI (Chapman, 2010). Since these are administered to each
team within the department the results need to be shared with the department. The next step is to
administer these assessments to upper management and share the results with the company. That
way everyone will be able to see what each other’s traits are and conduct themselves
accordingly. This can lead to a better understanding of people and can assist in presenting the
information needed not just for the offshoring project but everything the company does.
Conclusion
It was decided in the third quarter of 2011 that LexisNexis would offshore part of its
technical customer support team to Manila, Philippines. LexisNexis is a subsidiary of Reed
Elsevier, Inc. from London, England and has locations in over 100 countries with over 15,000
employees (LexisNexis, 2011). LexisNexis is a leading global provider of content enabled
workflow solutions designed specifically for a number of business types, including: legal, risk
management, government and corporate markets (LexisNexis, 2011).
Currently the Philippine Government faces threats from several groups on the US
Government’s Foreign Terrorist Organization list (CIA, 2011). But that plays only a small factor
in the decision by management to utilize the location. “The outsourcing and offshoring trend in
the Philippines is continually growing as they are the number one destination for call centers
over India (B. Flynn, personal communication, October 12, 2011).” Since the decision was
made in July of 2011, there have been three face-to-face meetings with staff to discuss the
decision and its implications to the staff. There have been ten emails and memos to the staff
attempting to keep the staff up to date with new developments.
The information has been presented in a lecture type of setting with a small question and
answer session at the tail end of the meeting. There are two problems with management’s current
19
communication style. The first problem is the frequency in which updates are given. The second
problem is in the presentation and subsequent understanding of the information.
To solve issue one, a procedure change is needed. Management needs to send out emails
every week as a status update. These emails need to be sent by a different manager to avoid
stagnation and staff not reading the messages. The emails should contain any new information, a
date for an upcoming meeting of discussion or that there is nothing new to report. “This would
make me feel like management actually had our well-being in their minds and that they are
keeping us in the loop (A. McDonough, personal communication, November 2, 2011).”
In order to solve the second issue three procedures need to be added to a current
LexisNexis practice. Currently customer support performs an annual personality assessment.
They use the Myers-Briggs Type Indicator (MBTI) tool and share the results with the individual
teams with the department. These results need to be shared with the department as well as the
teams since there is a great deal of interaction with different teams and co-workers. This allows
people to understand each other a little better and can generate less conflict and more effective
communication. The second addition to this practice is that the MBTI needs to be given to
management as well. This will give them a better understanding of themselves. The third
addition is to share the results of the managers with the employees and the results of the
employees with the managers. This gives everyone the opportunity to learn about each other and
develop meetings with a particular audience in mind.
“Communication is the key to a successful relationship.”
-Anonymous
20
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21
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